i noticed the last post from tassie was a bit of a hot one so i though t i would add to it.
i live in hobart and we have been looking for the all illusive positive geared property.we have noticed sine june this year when you could get properites in gagabrook, bridgwater, claredonvale and rokeby (ALL HOUSING COMMISSION AREAS WITH BAD NAMES) properties have gone up from median price 65- 85k up to 95- 120k the problem is that a lot of mainland investors are seeing the tassie potential ( nothing against u guys)
well for instance in gagebrook the average rent is 115 per week and now a lot of the investment properties are being advertised for 130 or 140 or even more per week AND THEY ARE VACANT.
property managers are actually saying NO to taking on properties in thes areas because of HIGH VACANCY RATESJUST THOUGHT YOU WOULD LIKE TO KNOW IF YOU ARE CONSIDERING BUYING INTHIS AREA
Hi,
I don’t know much about Tassie but I have found the same thing occurring in many parts of Central Victoria, where I live.
There have been so many people jumping on the investment property bandwagon that whilst vacancies were almost zero a year & more ago, they are now definately rising.
I actually moved out of home & was trying to find a place to rent with my 2 sisters two years ago, (we are all working), and applied for 10 or so before we actually managed to get one. (And I was applying through the same agency that managed my own properties, so they knew I was reliable!)
But things are changing quite drastically, as I discovered when I purchased a new investment property 2mths ago. My PM advertised it for the 4 weeks leading up to settlement, and only had 3 enquiries! I dropped the rent by $10 and got 1 more enquiry. It was not tenanted until the day after it settled (talk about leaving it till the last minute!) and that was the only person who applied so I didn’t have any choice of tenant.
The house is in a hugely popular area, opposite a school, 2mins from shops and 3mins from a uni. Its very neat and the rent very reasonable. A year ago I could have easily asked $200 pw from desparate uni students etc as accommodation was impossible to find – now I’m getting $170pw from the only applicant I had!
Very worrying [
] A case of too many investors and not enough tenants …Similar experience in Townsville, NQ. We’ve recently had to drop the rent on a townhouse from $180 to $175 per week to attract a tenant.
However another one of our units has just been re-let for $150, up $10 on the previous lease so we’ve made up the loss on the first.
It’s a bit of a worry when properties are vacant for a couple of weeks. I guess it all comes down to risk-tolerance. Mine isn’t as good as my husbands – I’m too much of a worrier!
hi all
Lizzy interesting to hear your comments on tas, i owned a property in clarendonvale (sold it recently) and it was a nightmare, at that time i owned about 15 homes and it caused more headaches than the rest combined. lizzy i too have warned about this area, on this forum. i found that there are few agents wanting to take on management in these suburbs because of the constant problems with tenants. and the insurance company i use wont take on anymore properties in some of these areas.
buyers beware.
westan
] A case of too many investors and not enough tenants …
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